CPA Exam Cheat Sheet.
The night-before summary, built like the exam.

Structure & scoring

• 4 sections, 16 hours: three 4-hour Cores (AUD · FAR · REG) + ONE 4-hour Discipline of your choice (BAR · ISC · TCP)
• Pass = 75 on a 0-99 scale — NOT a percentage correct, NOT curved
• Weighting: 50% MCQ / 50% TBS everywhere except ISC (60/40) — simulations are half your score
• AICPA writes and scores · NASBA (CPAES) processes applications and reports scores · your state board owns eligibility and the license
• Eligibility must be declared BEFORE applying; education/experience rules vary by jurisdiction · pass rates published quarterly

AUD anchors

• Audit risk = inherent × control × detection — detection is the auditor's lever (inverse to assessed risk)
• Opinion grid: material misstatement → qualified; material + pervasive → adverse · scope limit → qualified; pervasive limit → disclaimer
• Going concern + adequate disclosure = unmodified + emphasis paragraph
• Evidence: direct external confirmation > external-held-by-client > internal · originals > copies
• Engagement letter opens · management rep letter closes (refusal = scope limitation) · working papers belong to the auditor
• COSO: control environment is the foundation · analytics required at planning + final review
• Independence: ANY direct financial interest impairs — no materiality floor · PCAOB = issuers, ASB = nonissuers
• Service ladder: compilation (no assurance) → review (limited: inquiry + analytics) → audit (reasonable)

FAR anchors

• Revenue: contract → obligations → price → allocate → recognize as satisfied
• Rising costs: LIFO = lowest inventory & income · FIFO = reverse
• Market rate > coupon = discount (amortization raises interest expense)
• Ownership ladder: <20% fair value · 20-50% equity method (dividends REDUCE the investment) · >50% consolidate
• Finance lease = amortization + interest (front-loaded) · operating = one straight-line cost
• Contingency: probable + estimable = accrue · possible = disclose · gains never accrued early
• Fair value: L1 identical-active quote · L2 observable-similar · L3 unobservable
• Treasury stock cuts equity, never income · change in estimate = prospective, error = restate
• Governmental funds = modified accrual/current resources · NFP = two net-asset classes (with/without donor restrictions)
• Basic EPS = (income − preferred dividends) ÷ weighted-average shares

REG anchors

• Contract = assent + consideration · UCC goods ≥ $500 need a writing (4 exceptions)
• Apparent authority survives private revocation until third parties get notice
• 1933 Act = new issues · 1934 Act = secondary trading + SEC
• LLC members risk only investment (absent guarantee/veil-piercing) · LP needs ≥1 general partner + state filing
• Exclusions: muni interest, physical-injury damages (punitives taxable) · tax benefit rule governs recoveries
• NOLs: indefinite carryforward, 80% of taxable income cap · inherited property = automatic long-term
• Penalties: accuracy 20% · civil fraud 75% · trust-fund liability hits responsible + willful persons personally
• Preparers may not use/disclose return info without specific consent

Discipline choice

• BAR ← extends FAR (reporting/advisory) · ISC ← near AUD (systems/SOC) · TCP ← extends REG (tax careers)
• Pair the Discipline right after its related Core · license is identical whichever you choose

Night before

• Re-run the AUD opinion grid and FAR ownership ladder — highest-frequency, most-confusable tables
• Remember: TBS = half the score (ISC: 40%) — pace the exam accordingly
• Logistics and credit-window rules are your board's — confirm from its site, not third-hand numbers